What are the values of gdp-gnp and national saving

Reference no: EM13244066

A small island nation that lives in anarchy and does not have agovernment is endowed with indestructible coconut trees. Thesetrees live forever and no new trees can be planted. Every year $1million worth of coconuts fall of the trees and can be eatenlocally or exported to other countries. In past years the islandnation ran current account surpluses and financial accountdeficits, acquiring foreign bonds. It now owns $500,000 of foreignbonds. The interest rate on these bonds is 5% per year. Theresidents of the island nation consume $1,000,000 per year. Whatare the values of GDP, GNP, national saving, the current accountbalance, the financial account balance, and investment in thiscountry?

Reference no: EM13244066

Questions Cloud

Find the shear stress on the rod : A horizontal aluminum rod 4.8 cm in diameter projects 5.6 cm from a wall. A 1200 kg object is suspended from the end of the rod, Find the shear stress on the rod

Explain how can the presence of air bubbles in the salt : Small air bubbles in the salt bridge may not be a problem. How can the presence of air bubbles in the salt bridge alter the effectiveness of this salt bridge

Calculate the rate of inflation between years 1 and 2 : In a hypothetical economy, the annual velocity of money is 10,and level of real output is $800 billion. In year 1, the economy'smoney supply is $100 billion and in year 2 it is $112 billion.Calculate the rate of inflation between years 1 and 2

Explain single geometric isomer or a mixture of isomers : What evidence do you have that your product consists of a single geometric isomer or is a mixture of isomers? Does the melting point give such information

What are the values of gdp-gnp and national saving : A small island nation that lives in anarchy and does not have agovernment is endowed with indestructible coconut trees. Thesetrees live forever and no new trees can be planted. Every year $1million worth of coconuts fall of the trees

Solve for the price elasticity of demand : Consider the market for taxi ridesin a particular metropolitan area. a) Suppose that, when the price permile increases by 40%, total miles demanded falls by 30%. Solve for the price elasticity of demand.

Explain mixture of nitrogen and hydrogen reacts : a mixture of nitrogen and hydrogen reacts as fully as possible to form a 56 l mixture of ammonia and hydrogen at stp. when this mixture is compressed to 10.0 atm and chilled to 200.0 K, all of the ammonia is liquefied leaving 3.2 L of hydrogen sti..

The new cfo thinks that inventories are excessive and could : Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%. Under Plan A it would use 25% debt and 75% common equity.

Determine what is the euac of corporation : Quagmire Corporation wants to set up a manufacturing plant to last for 20 years. Initial costs at year 0 are $18,000 for the building and $31,000 for the equipment. At year 10 there will be a major machinery overhaul

User Account

All Pages